Workplace of the Prime Minister – On September 16, 2024, Prime Minister Hon. Philip J. Pierre tabled the Insolvency Invoice in Parliament. The proposed laws offers a authorized framework for people going through monetary difficulties to renegotiate their debt obligations with collectors by way of structured proposals. This invoice goals to strike a stability between the pursuits of debtors and collectors whereas addressing the problem of non-performing loans inside monetary establishments.
One of the notable options of the invoice is the safety it provides to major residences. It exempts a sure portion of a debtor’s fairness of their major house from collectors, making certain that households can retain their houses whereas managing their money owed.
This invoice offers vital advantages to shoppers, together with:
- Debt Forgiveness: Enabling debtors to barter partial or full debt forgiveness.
- Inexpensive Restructuring: Establishing a low-cost, out-of-court course of for debt restructuring, permitting debtors and collectors to succeed in mutually helpful agreements.
- Creditor Intervention: Empowering debtors to halt creditor actions towards them.
- Asset Safety: Permitting debtors to pause the sale of their belongings whereas they work to resolve their money owed.
Prime Minister Pierre highlighted that the Insolvency Act will modernize the credit score sector in Saint Lucia, redefining the connection between collectors and debtors. It additionally aligns the federal government’s monetary insurance policies with worldwide monetary establishments such because the World Financial institution, the Caribbean Improvement Financial institution (CDB), and the Worldwide Financial Fund (IMF).
The event of this laws started in 2014 and has since undergone quite a few revisions and consultations with stakeholders. Almost a decade later, Prime Minister Hon. Philip J. Pierre has efficiently guided the Insolvency Invoice by way of Parliament.
The Prime Minister additionally counseled the Nationwide Competitiveness and Productiveness Council (NCPC) for its management in drafting the Insolvency Laws, which guarantees to convey transformative change to Saint Lucia’s monetary panorama.
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A duplicate of the brand new act may be accessed here.
